The ringgit opened flat on Monday and is expected to move positively following the interest rate cut in the United States last week.
At 10.25am, the ringgit was at 4.2130 which is a 0.31% drop since it opened against the USD from 4.2005 at the close last Friday.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam said the Fed is now targeting maximum permanent employment data and leading to potential expansion.
Accordingly, traders and investors are confident in the current economic outlook and there is a risk mode that will bode well for the ringgit.
Local notes showed a favorable performance following a 50 basis point interest rate cut by the Fed on September 18.
Meanwhile, the ringgit traded mixed against a group of major currencies.
The local note strengthened further against the Japanese yen to 2.9160/9284 from 2.9182/9229 at last Friday's close and was almost unchanged against the euro at 4.6873/7069 from 4.6878/6950 last week.
However, it fell further against the British pound to 5.5921/6154 from 5.5841/5928 at Friday's close.
In addition, the ringgit recorded a similar performance against Asean currencies with a decline against the Singapore dollar to 3.2539/2677 from 3.2507/2559 at Friday's close and a decline against the Thai baht to 12.7508/8137 from 12.7026/7288 previously.
The ringgit was almost unchanged against the Philippine peso and Indonesian rupiah trading at 7.55/7.58 against the peso from 7.55/7.56 on Friday and at 277.2/278.5 against the rupiah from 277.2/277.8 previously.
